Buying a new car is challenging. With so many options at varying prices and financing choices from different dealerships, getting a good deal on a new car can seem extremely difficult. But it doesn’t have to be.
In this article, you’ll learn some of the best tricks and strategies for negotiating and getting the best price for your dream car. Keep reading!
1. Do Your Research
Like a scout, you should be prepared. Before setting foot in a dealership, you must research and obtain all the necessary information to negotiate a good car price deal.
Today’s shoppers have easy access to information about cars and the shopping process. So, use that to your advantage. Find the exact vehicle you want and other alternatives. Research how much it costs and what other buyers are paying.
Furthermore, you can look for dealer inventories and discount offers. Talk to multiple dealerships using your phone, negotiate prices over the internet, and get firm offers. When you go to a dealership, you can also take printouts of the pricing details, mainly if they offer a special offer. By researching and being knowledgeable, you increase your chances of doing better negotiations and getting the best deals on your new car.
2. Get Pre-Approved
One of the most effective ways to get a good deal on your car is to reduce the number of items you need to negotiate. And one of the essential items to settle before visiting a dealership is financing.
If you need to get a loan for a new car, consider getting pre-approved first. This has become easier thanks to the internet. Most traditional banks and credit unions now have a digital presence. You can also find online lenders for car loans where you can apply.
Once you’ve got a pre-approval in writing, you’ve removed one of the most significant pieces in the negotiation puzzle. It also helps set a limit on the loan’s length and rate the dealership can offer you.
Moreover, a dealership may also offer financing that can beat the pre-approved loan you already have, which they often avoid unless you can show them that you can get an auto loan elsewhere. Lastly, getting pre-approved gives you a realistic budget you can afford.
3. Use Dealerships To Your Advantage
Did you know that most dealerships have the policy to beat other dealerships’ pricing? Although dealers will only beat another one’s price by a small margin, you can still save a few hundred. That said, since it only takes out a small amount, you should do this until you’re ready to buy and confident you’ve got the lowest quote possible.
Try to get hard figured on the price over the phone. Make sure it includes all fees and taxes. Otherwise, a dealer may try to squeeze in extra charges at the last minute, rendering the small final discount useless.
4. Avoid The Extras
Don’t be too confident after settling the price with a sales agent. Once you enter a dealer’s finance office or a sales agent drafts the contract, you’ll be offered a wide array of add-on products, from interior protection packages to extended warranties to insurance extras. Sales agents will also pressure you into buying them on the spot and include them in your financing.
If you’re not careful, you’ll end up spending the money you saved through careful negotiations and more. Learn to say no and buy only the car, even if it seems like a great deal. Most of these add-ons can be purchased outside at much lower prices. Also, some don’t need to be bought right away.
5. Pay In Cash
Most people don’t realize that financing is the profit center of any car dealership. Finance managers are commissioned salespersons. And financing a new car through a dealership means significant financing charges, which are purely dealership profits.
With numerous complex terms, ensuring you’re getting a good deal on the financing offer can be challenging. However, if you’re a cash buyer, you can get the exact price of a car and pay for it. So, if you have enough savings to buy a car with cash, you’ll save thousands from interest and avoid the stress of negotiations. Just make sure that this won’t compromise your daily lifestyle.
As you can see, getting the best deal on a new car doesn’t have to mean hours of searching and negotiating. Using the tips mentioned above can remove some of the stress that comes with making such a significant decision. With some planning and haggling skills, you can shop like a pro and take home a new car at the best deal possible.